India and US Strengthen Ties Amid Tensions Over Trade Tariffs**

Fri Feb 28 2025 19:16:22 GMT+0200 (Eastern European Standard Time)
India and US Strengthen Ties Amid Tensions Over Trade Tariffs**

Prime Minister Modi and President Trump emphasize cooperation while addressing challenging trade policies during their historic meeting.**


In a pivotal meeting, Indian PM Narendra Modi and US President Donald Trump unveiled plans for increased energy imports and defense sales, while navigating the complexities of trade tariffs that could impact both nations.**


Amid growing tensions over trade policies, Indian Prime Minister Narendra Modi celebrated a burgeoning "mega partnership" with the United States following discussions with President Donald Trump. The leaders agreed on a significant deal, promising India to import greater quantities of American oil and gas, a necessity given India's existing reliance on global energy suppliers.

Trump's criticism of India's high trade tariffs was a focal point of the discussions, as he labeled them a "big problem." To counteract potential tariff barriers, Modi expressed a willingness to consider lowering tariffs on US products. The Indian Prime Minister introduced a playful twist on Trump's campaign slogan, proclaiming "It's Make India Great Again - Miga" and underscoring their collaboration as key to enhancing prosperity for both countries.

The implications of this energy arrangement are notable given that the US stands as the largest market for Indian exports, highlighting a shared interest in improving trade relations. "The energy deal represents a low-hanging fruit for both sides," remarked Radhika Rao, a senior economist. Despite these optimistic discussions, experts cautioned that rising oil prices in the US could exacerbate India's trade deficit, complicating the economic landscape.

In defense cooperation, the leaders also discussed significant military sales, including potential agreements for India to acquire advanced F-35 fighter jets. This commitment comes alongside discussions on immigration issues, where Trump agreed to extradite a suspect connected to the 2008 Mumbai terror attacks, a gesture Modi praised.

However, fears of increased tariffs loom large, as Trump has recently instructed aides to prepare new tariff proposals for global trading partners. With India facing an average tariff that greatly exceeds that of the US, this development raises concerns about possible retaliatory measures.

As both leaders emphasized the need for cooperation, Trump's earlier criticisms of America's trade balance highlighted ongoing challenges. The administration's commitment to adjusting tariffs on various countries underscores a complex but evolving relationship between two key players on the global stage.

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